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In this paper, we employ an algebraic approach to investigate the dynamics of entanglement in a two-dimensional noncommutative harmonic oscillator. We start by using the so-called the Bopp shift to convert the Hamiltonian describing the system into an equivalent commutative one. This allows us to take advantage of the Schwinger oscillator construction of SU(2) Lie algebra to reveal through the time evolution operator that there is a connection between the noncommutativity and entanglement. The degree of entanglement between the states is evaluated by using the purity function. The remarkable emerging feature is that, as long as the noncommutativity parameter is nonvanishing, the system exhibits the phenomenon of collapse and revival of entanglement.